The Craze of Premium Domain Names

 

Everywhere I go on the internet I hear about the craze of premium domain names. What in the world is a premium domain name anyway? And what exactly makes a domain name a premium domain name? 

I don’t think it would have much to do with the name itself. I've seen some stupid domain names that are considered premium domain names. So, I did a little research to feed my curiosity of what premium domain names are.

What I found out is that a premium domain name is one that has already been registered and is now up for sale, usually via means of an auction to the highest bidder. This is simple enough but the reality of trying to get one of these specks of gold is a different story altogether. 

Getting my hands onto a premium domain name would mean that I have to part with thousands of dollars in most cases.

How come these domain names got to be a premium domain name to begin with? I can explain this, as it’s actually pretty simple. Somebody buys a domain, builds as website on it, and then builds traffic. If the traffic is high enough the website will get high PR and search engine ranking.

This will then be monetized by selling the premium domain name for a lot of money. How much is determined by different factors.

The first factor is how much work they've put into the domain. If the site is very popular, then this is going to greatly affect the value of the domain itself. Many internet marketers make a living with this by simply creating killer sites and selling them at auction. You can see how popular this is by visiting those auction sites. They figure that it's less work than having to maintain the site forever.

The second factor is the person who is putting the premium domain up for auction. Take somebody like the Rich Jerk who previously auctioned one of his sites on EBay for $500,000.

Because he has such an established name as an internet marketer, you can bet your last dollar, that the domain is going to sell for a lot of money, making it instantly a premium domain.

The last factor is how much in demand that domain name is going to be. If you're selling a domain name with a keyword or keyword phrase that isn't searched for much, you won’t have premium domain name to sell. 

But if you've got a name like income.com, which John Reese recently bought for $1 million, well, then you're going to make a nice profit off the sale.

Do your research first, if you're planning on buying or selling a premium domain name. Find out what it's really going to be worth to you if you're buying it and then find out what you can realistically get for it if you're selling it. Both things will depend on lots of keyword and market research. 

Premium domain names don't always sell at a premium.The secret of snapping one up at bargaining prices is to search for it and understanding the internet marketplace.

 

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